Memo

Date:

June 24, 2019

To: Oregon State Lottery Commissioners

From: Barry Pack, director

Subject: FY 2020 Budget Recommendation

Please find attached for your approval the director’s recommended budget for FY ’20. This budget aligns with the Lottery’s Strategic Plan, which was previously approved by the Commission, and addresses obsolescence, optimizes our operations and supports revenue generation and the diversification of our product portfolio and player base.

As we have discussed, while Lottery continues to plan, test and discover new aspects of our strategic plan, this budget moves the Lottery from a strictly planning phase into implementation. As such, investments are recommended in systems, equipment, planning and people.

The significant items in this year’s budget include $27M for equipment to replace outdated traditional retail equipment, $24M for a VLT procurement based on field-test results, and $33M in project expenses in support of our modernization effort and strategic plan. Changes from the budget presented at the May Commission Budget Work Session include updates to the revenue forecast from the Office of Economic Analysis, carryover items from the FY ’19 budget and an additional $1.4 m in program expenses for the modernization effort – all of these changes are itemized in an update in your packet, provided by Kathy Ortega, chief financial officer.

As in the past, the Commission will have an opportunity to revise the budget in the January timeframe for any updates needed.

Please do not hesitate to reach out to me or Kathy Ortega if you have any questions.

Oregon Lottery FY ’20 Programs and Projects 

During FY ’20, the Lottery will continue with major projects to further its business strategies. A 

description of activities for the next fiscal year follows, organized under the five distinct 

“pillars” of projects that encompass Lottery’s strategic plan.  The programs for FY ’20 reflect an 

agile approach including data‐driven decisions based on proofs of concept, field tests, and 

course correction as needed, and are designed to address obsolescence, optimize our 

operations and leverage revenue generation.   

GAMING PROGRAMS UPDATE  

Traditional Enterprise System Replacement  

 

Lottery  is  engaged  in  ongoing  contract  conversations with  the  current  Traditional  gaming  system 

vendor to upgrade ES Traditional system to the most current Aurora system.  This contract will include 

point of sale equipment which support the platform as well as replacing a portion of currently deployed 

self‐service vending equipment with more modern technology.  The current budget includes $27.7M 

for the equipment.  The go live date for this system is projected to be November 2020. 

 

Video Lottery℠ Program 

 

The Lottery plans to invest $16.9M on new game sets to continue to build libraries of G2S product 

on existing  and  future  terminals,  supporting a  strategy of  active game management  that has 

increased video sales.  Lottery is engaged in contract discussions with the vendor of the Intelligen 

system for an upgrade of the platform to the most current version.   This upgrade will provide 

enhanced revenue generating capabilities such as progressive jackpots over a wide area network.  

Lottery will continue with the strategy to test new terminals and base purchase decisions on the 

result  of  test  data.    Testing  is  scheduled during  FY  ’20 with  a purchase based on  test  results 

planned  for  late  in  the  fiscal year.   The  timing of  implementation of  the  Intelligen upgrade  is 

projected  to  be  June  2020  and  $6.7M  is  included  in  the  FY  ’20  program  budget  for  this 

implementation. 

 

Sports Bet 

 

While many of the projects in FY ‘20 enhance and support the infrastructure needed for new revenues 

such as sports betting, the current budget does not include all costs or reserves needed to implement 

the  Sports  Bet  program  in  either  the  digital  or  retail‐based  solutions,  nor  are  revenue  estimates 

included.  The Lottery is currently planning go‐live with a digital option for the 2019 NFL season with 

retail offering after the first part of the calendar year.   

BUSINESS SYSTEM MODERNIZATION 

The Lottery continues with plans laid out on our modernization roadmap over the next 3‐5 years.  

The modernization roadmap includes enterprise architecture options, new gaming platform and 

path to digital transformation of our operations. The goal is to optimize investments in marketing, 

product innovations and internal capability enhancements, leveraging product costs, personnel 

and resource data utilization. The FY ’20 budget includes $33.2M in program expenses, the details 

of which are included in budget materials.   The bodies of work that are ongoing in FY ’20 are 

implementation  of  upgraded  Microsoft  ERP  platform,  continued  discovery  into  customer 

information  and  access  management  systems  (CIAM),  continued  discovery  and  planning  for 

future  gaming  platform,  ongoing  work  on  the  mobile  and  website  applications  as  well  as 

information management and document management programs. 

STRATEGIC STAFFING AND STRATEGIC SOURCING 

During FY ’19 Lottery implemented new pay equity laws and continued with efforts to modify 

our compensation structure, which has not been updated since 1998.  Highly qualified staff are 

critical to support strategic initiatives on the four‐year road map and attractive, market‐based 

compensation is needed to recruit and retain critical staff.  Lottery continues to assess the 

capabilities needed to complete the roadmap and digital transformation.  The FY ’20 budget 

includes $2M of training to re‐tool our employees as we transition into a digital first 

environment, and $2M of additional staffing costs to provide capabilities to implement 

strategies.   

Lottery will continue with efforts to implement strategic sourcing, a critical capability to 

operate in a digital and cloud‐centric world.  Work is ongoing with Deloitte, a vendor with deep 

subject matter expertise in this area.  With Deloitte’s assistance Lottery will learn and 

implement enhanced capabilities in this area.  

PROJECTIONS AND RESERVE REQUIREMENTS 

The total cost estimate for all modernization activities remains at $102M.  The challenge the 

organization and the Commission faces is the timing of expenses over the next several years 

due to pacing of the work.   Lottery is using an agile approach to this body of work which means 

that things change at a rapid pace as learning and changes occur.  The structure of Lottery’s 

finances mandates that any monies over and above the contingency reserve limit (established 

by the Commission) at the end of the fiscal year be transferred as administrative savings, unless 

otherwise designated for reserve by the Commission.  Over the next several years we may have 

unspent budget needed for the modernization generating administrative savings due to timing 

of work, pacing of projects.  This has resulted in budget dollars being moved into subsequent 

fiscal years as we progress through the roadmap.  Movement of funds into subsequent budget 

cycles has been a pattern seen in the last couple of fiscal years due to the annual nature of our 

budget while implementing plans in the 3 to 5‐year time frame.  The Commission may need to 

raise the contingency so the funding for the modernization isn’t transferred.   

 

The projections also show the contingency reserve at a very low level at the end of the 

modernization.  This projection is a worst‐case scenario in that future revenues are not 

included, cost estimates are aggressive, and Lottery has not historically spent 100% of budget.  

Given these assumptions there is a possibility of an upside scenario of a contingency balance 

higher than what is shown by at least $30M.  Lottery will monitor these projections and report 

back regularly.   

 

 

May Worksession June Final Draft Changes Description of Changes

Revenue

Video LotterySM 12,934,978,503$   12,915,891,148$   (19,087,355)$           Updated Video revenue and variable costs for final May 2019 DAS forecast.

Scratch‐ItsSM            133,252,596             133,252,596                                   ‐ 

MegabucksSM              33,464,557               33,464,557                                   ‐ 

Pick 4SM                1,591,138                 1,591,138                                   ‐ 

Powerball®              46,656,364               46,656,364                                   ‐ 

Mega Millions®              28,802,319               28,802,319                                   ‐ 

Win For LifeSM                3,928,407                 3,928,407                                   ‐ 

Keno            100,440,240             100,440,240                                   ‐ 

Lucky LinesSM                1,830,000                 1,830,000                                   ‐ 

RaffleSM                2,500,000                 2,500,000                                   ‐ 

Total Revenue  $  13,287,444,124   $  13,268,356,769   $         (19,087,355)

Less:  Prizes      12,168,936,740       12,151,313,385              (17,623,355) Updated Video revenue and variable costs for final May 2019 DAS forecast.

Net Revenue  $    1,118,507,384   $    1,117,043,384   $           (1,464,000)

Direct Expenses

Commissions  $       257,643,694   $       257,307,909   $               (335,785) Updated for final May 2019 forecast Video revenue.

Game Vendor Charges                7,992,470                 7,992,470                                   ‐ 

Tickets                4,370,000                 4,370,000                                   ‐ 

Advertising              10,146,076               10,396,076                      250,000  Additional $250K for "Digital Player Journey" advertising

Sales Support                1,196,150                 1,526,650                      330,500  Added expenses to FY 20 play stations that won't be complete in time for FY 19 

cutoff.

Game Equipment/Parts & 

Maintenance

             22,314,500               22,714,500                      400,000  Added expenses for Bally V32 gamesets that were delayed from FY 19 to FY 20.

Depreciation              23,348,165               23,348,852                             687  Updated depreciation estimates through 5/31/19 activity.

Total Direct Expenses  $       327,011,055   $       327,656,457   $                645,402 

Gross Profit  $       791,496,330   $       789,386,927   $           (2,109,403)

Indirect Revenue  $            8,762,000   $            8,762,000   $                              ‐ 

Indirect Expenses

Public Information                8,613,900                 8,709,100                        95,200  Added $95,200 for Product Marketing agency/consultant fees.

Market Research                 1,740,000                 1,740,000                                   ‐ 

Salaries & Benefits              67,921,693               67,921,693                                   ‐ 

Services & Supplies              60,278,270               62,922,439                  2,644,169  Primarily additions to cover costs for Sports Bet that were not available in May.

Depreciation                3,084,693                 3,277,774                      193,081  Updated depreciation estimates through 5/31/19 activity.  Added $15K for 

Microsoft Hubs in IT budget.

Interest Expense                   310,782                    310,782                                   ‐ 

Total Indirect Expenses  $       141,949,338   $       144,881,788   $             2,932,450 

Net Profit  $       658,308,992   $       653,267,139   $           (5,041,853)

Oregon State Lottery

FY 2020 Budget

Summary P&L Changes

Oregon State Lottery

     Proposed Budget

Statement of Profit & Loss

(in thousands of dollars)

 FY 2019 

Approved 

Budget* 

 FY 2020 

Proposed  

Budget 

 Discussion 

Revenue

Video LotterySM 12,396,528$    12,915,891$   

Scratch‐ItsSM 132,510            133,253           

MegabucksSM 34,598              33,465             

Pick 4SM 1,634                1,591               

Powerball® 45,942              46,656             

Mega Millions® 50,815              28,802             

Win For LifeSM 3,772                3,928               

Keno 101,448            100,440           

Lucky LinesSM 1,705                1,830               

RaffleSM 2,500                2,500               

Total Revenue 12,771,452      13,268,357     

Less:  Prizes 11,678,620      12,151,313      Based on current estimates

Net Revenue 1,092,833        1,117,043       

Direct Expenses

Commissions 252,703            257,308            Based on current contract rates

Game Vendor Charges 8,459                7,992                Using current contractual rates for both video and Traditional

Tickets                 3,700  4,370                Based on plans of current game mix

Advertising 8,889                10,396             

Based on product support plans moving to more digital 

advertising

Sales Support 1,815                1,527               

Game Equip/Parts & 

Maintenance 16,317              22,715              Includes $16.9M in new games for VLT's

Depreciation 32,463              23,348              Down due to timing of VLT program purchases

Total Direct Expenses 324,347            327,656           

Gross Profit 768,486            789,388           

Indirect Revenue 5,356                8,762                Based on current balances and higher interest rates

Indirect Expenses

Public Information 9,830                8,709               

Market Research 1,396                1,740                Increase due to research needed for digital transformation

Salaries & Benefits 61,773              67,922             

Includes 5% step increase  and 3% cola and $2M staffing for 

new capabilities to support strategies.

Services & Supplies 35,000              62,922              Includes $33.2M of roadmap project expenses

Depreciation 2,978                3,278               

Interest Expense 376                    311                   

Total Indirect Expenses 111,353            144,882           

Net Profit 662,489$         653,268$        

Administrative Expense Ratio 3.4% 3.5%

Capital Spending 9,437$              54,567$           

 

*Includes mid‐year adjustments and May 2019 revenue forecast changes.

 DESCRIPTION   AMOUNT 

Site Services

  Space Planning (includes $615K of FY '19 projects not completed) and  

         restroom(s) remodel and public space remodel 1,015,000$    

HVAC Upgrade 100,000             

Fire Alarm Replacement 80,000               

              Total Site Services 1,195,000          

Fleet replacements for FY '20 per  guidelines 512,000             

Information Technology

  Firewall upgrade 637,000             

Security

   New badging equipment, cameras, new depot buildout 75,000               

Gaming Operations

    Aurora Equipment 27,717,283        

     VLT Replacements 24,990,000        

  Debit card implementation 50,000               

     Other 5,500                  

                    Total Gaming Operations  52,762,783        

    Total Capital Expenditures (less $615K carryover from FY '19)  54,566,783$  

                       FY 2020 Budget

 Capital Expenditures

 FY 2017 

Actual 

 FY 2018 

Actual 

 FY 2019 

Projected 

Actual 

 FY 2020 

Proposed  

Budget 

 

Total Revenue 12,012,808$   12,359,851$   12,867,682$   13,268,357$     

Less:  Prizes 11,004,599      11,284,939      11,762,070      12,151,313        Net Revenue 1,008,210        1,074,912        1,105,612        1,117,043          

Direct Expenses  

Commissions 238,464           245,681           254,442           257,308             

Game Vendor Charges 9,251                8,440                8,489                7,992                  

Tickets                3,443                 3,043                 3,135                    4,370 

Advertising 11,914              10,815              7,400                10,396                

Sales Support 624                   966                   947                   1,527                  

Games, Equip, Parts & 

Maintenance 1,080                6,766                9,205                22,715                

Depreciation 26,248              31,273              32,327              23,349                

Total Direct Expenses 291,024           306,983           315,945           327,656             

Gross Profit 717,185           767,928           789,667           789,387             

Indirect Revenue 4,629                1,664                12,402              8,762                  

Indirect Expenses

Public Information 7,069                6,542                9,575                8,709                  

Market Research 1,635                292                   1,223                1,740                  

Salaries & Benefits 48,946              53,888              59,089              67,922                

Services & Supplies 13,707              13,582              20,142              62,922                

Depreciation 2,831                2,616                2,604                3,278                  

Interest Expense 325                   714                   376                   311                     

Total Indirect Expenses 74,513              77,633              93,009              144,882             

Net Profit 647,301$         691,959$         709,060$         653,267$           

Change in Net Profit

Administrative Expense Ratio 3.0% 3.1% 3.1% 3.5%

Capital Spending 30,000$           36,886$           9,437$              54,567$             

OREGON LOTTERY

Actual Spending Comparison

(thousands of dollars)

 FY 2019 

Approved 

Budget* 

 FY 2020 DRAFT 

Budget 

 Variance 2020 

vs. 2019 

Incr./(Decr.) 

TRAVELIn‐State Travel & Mileage 400,638$           423,641$           23,003$            Out‐of‐State Travel 237,591             290,567             52,976              Total Travel 638,229             714,208             75,979              

OFFICE EXPENSESShipping 181,350             197,350             16,000              Office Supplies & Equipment 359,856             398,880             39,024              Publications 8,650                  6,490                  (2,160)               Equipment Maintenance 82,500               71,562               (10,938)             Total Office Expenses 632,356             674,282             41,926              

COMMUNICATIONS NETWORK

Monthly Service 6,821,400          6,750,000          (71,400)             

Monthly Service Recovery (7,127,739)        (7,128,000)        (261)                   

Installations 61,200               52,800               (8,400)               

Installations Recovery (98,904)              (98,280)              624                    Total Communications Network (344,043)            (423,480)            (79,437)             

TELECOMMUNICATIONSCell Phones 308,000             330,400             22,400              Telephones & Conference Calls 75,160               80,900               5,740                 1‐800 Service 150                     ‐                          (150)                   Network Communication 597,500             1,262,700          665,200            Total Telecommunications 980,810             1,674,000          693,190            

INTERGOVERNMENTAL CHARGESDepartment of Administrative Services Charges 734,321             917,426             183,105            State Treasurer Charges 58,000               54,000               (4,000)               Secretary of State Charges 115,437             167,125             51,688              Total Intergovernmental Charges 907,758             1,138,551          230,793            

INFORMATION TECHNOLOGY

Technology Equipment Maintenance 966,184             826,084             (140,100)           

Technology Software Maintenance 1,846,560          1,422,460          (424,100)           

Web Subscriptions 1,255,399          2,501,405          1,246,006         

Software Purchases 2,122,800          2,182,000          59,200              

Technology Equipment, Supplies & Hardware 902,174             561,150             (341,024)           Total Information Technology 7,093,117          7,493,099          399,982            

PROFESSIONAL SERVICESContract Payments 18,030,258       44,191,932       26,161,674      Oregon State Police Charges 3,646,000          3,850,000          204,000                 Sub‐total 21,676,258       48,041,932       26,365,674      

Attorney General Charges 340,000             250,000             (90,000)             Legal Fees 14,500               22,000               7,500                 Employment Hearings 14,600               14,600               ‐                     

Sub‐total 369,100             286,600             (82,500)             Total Professional Services 22,045,358       48,328,532       26,283,174      

Oregon State LotteryServices and Supplies Budget by Category

Fiscal Year 2020

*Includes mid‐year budget adjustments.

 FY 2019 

Approved 

Budget* 

 FY 2020 DRAFT 

Budget 

 Variance 2020 

vs. 2019 

Incr./(Decr.) 

Oregon State LotteryServices and Supplies Budget by Category

Fiscal Year 2020

STAFF RECRUITING, TRAINING & DUES

Dues & Memberships 118,220             112,301             (5,919)               Training Media 1,824                  1,824                  ‐                     

Lottery‐Wide Development & Training 2,000                  3,000                  1,000                 

Professional Development 237,110             254,431             17,321              

Technical Training 57,999               70,499               12,500              

Continuing Education Training 57,514               62,145               4,631                 

Lottery Conferences 39,825               54,965               15,140              

Professional Conferences 32,744               72,685               39,941                   Sub‐total Training 429,016             519,549             90,533              

Recruiting & Interviews 24,050               23,350               (700)                   

Relocation Fees 20,000               ‐                          (20,000)             Sub‐total 44,050               23,350               (20,700)             

Total Staff Recruiting, Training & Dues 591,286             655,200             63,914              

FACILITIESRent 475,700             561,000             85,300              Utilities 258,550             293,050             34,500              Total Facilities 734,250             854,050             119,800            

FACILITIES MAINTENANCEBuilding Maintenance 293,650             194,850             (98,800)             Equipment Maintenance 67,250               70,250               3,000                 Janitorial 63,250               60,750               (2,500)               Building Security 2,000                  2,000                  ‐                     Total Facilities Maintenance 426,150             327,850             (98,300)             

OTHER SERVICES & SUPPLIESCollection Costs 3,000                  3,000                  ‐                     Meetings 21,725               26,953               5,228                 Equipment Rental 1,000                  1,500                  500                    Security Services 108,924             106,534             (2,390)               Other Services and Supplies 146,165             184,910             38,745              Trademarks & Patents 200                     200                     ‐                     Service Recognition 4,800                  6,900                  2,100                 Miscellaneous Small Parts & Tools 123,150             232,200             109,050            Safety 15,500               15,000               (500)                   Non‐Capitalized Assets 21,500               16,800               (4,700)               Miscellaneous Expense 22,900               17,900               (5,000)               Recycling & Disposal 56,750               53,750               (3,000)               Storage 61,500               68,000               6,500                 Total Other Services & Supplies 587,114             733,647             146,533            

FLEET EXPENSEVehicle Rental 7,500                  7,500                  ‐                     Repairs & Maintenance 230,000             245,000             15,000              Fleet Fuel 470,000             500,000             30,000              Total Fleet Expense 707,500             752,500             45,000              

SUPPLIER DIVERSITY ‐                          ‐                          ‐                         

TOTAL EXPENSES 34,999,885$     62,922,439$     27,922,554$    

*Includes mid‐year budget adjustments.

OREGON STATE LOTTERY FY 2020 Budget 

SERVICES AND SUPPLIES NARRATIVE VARIANCE EXPLANATION  

  Itemized below are descriptions of major changes (cost increases > $50K) in Services and Supplies over the prior year approved budget. There may be offsetting variances within some of the lines which has resulted in an overall increase in spending over FY ’20 of $ $27.9M.      

Total  Travel  ‐  $76K  increase.      Largely  due  to  increased  training  and  conferences  to  support strategies. 

 

Telecommunications  ‐  $693K  increase.   Additional  costs  needed  to  increase  infrastructure  to support strategies. 

 

Intergovernmental charges ‐ $231K increase.  Due to additional coverages for Cyber and Business Interruption insurance coverage.  

Professional services ‐ $26.283M increase.  Costs associated with the business modernization are shown in this line item.    

Staff recruiting and training ‐ $64K increase.  Costs associated with training on agile and other tools needed to support strategies.  

Facilities ‐ $120K increase.  Rent for additional storage units in Coos Bay, Roseburg and Portland.  

Other Services and Supplies ‐ $147K increase.  Largest increase due to costs for locks and keys for new Video Lottery Terminals.    

 

PI Planning PI Planning PI Planning PI Planning PI Planning PI Planning PI Planning PI Planning PI Planning PI Planning PI Planning PI Planning

January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November DecemberQ1 2021 Q2 2021 Q3 2021 Q4 2021Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

Enterprise Strategic Initiatives Roadmap

Q1 2019 Q2 2019

Retail Partner Management Phase I - Retail Partner Management Modernization Phase II - Secure SolutionRPM Phase 0 - Foundational

Future Gaming Platform Phase I - Vendor Selection, Gaming Platform Phase II - Implement the solution Gaming Platform Phase III - Design, Implement and prepare for UAT Gaming Platform Phase IV - Final implementation Gaming Platform Phase V - PilotFuture GP - Discovery work effort

PPM Tool Phase 0 - Foundational / ResearchPhase I - Configuration &

PPM Tool Phase II - Pilot and Refine EPMO

Aurora Phase I - Contracting Aurora Phase I - Requirements Aurora Phase I - Tech. Des./Development Aurora Phase I - Testing/Integration (And Phase 2 Deployment Feb/March Retail facing eq.) Aurora Phase I - Parallel Go-Live

Ret. Contract Phase 1 Draft Contract/System Eval. Phase II System Updates & Testing

Website Remodel - MVP - Foundational Website Remodel - Content and Lift

Phase 1 : Data center Migration( Hardware including Networking), Repurpose Space

EIM Phase 1 - Baseline Capability EIM Phase 2 - MDM EIM Phase 3 - Metrics EIM Phase 0 - Research

Strat Sourcing Phase I - Assessment Strategic Sourcing Phase 1 - Pilot 1 - ITSM Phase 2- Future Gaming

EA Phase I - Outcomes & Charter EA Phase II - Staffing EA Phase III - Integration EA Phase IV - Marekt scan & EA Phase V - Tool EA Phase 0 - Research

Records and Document Management Phase II - Development and ImplementationRecords and Document Management Phase I - Discovery Work Effort

Draw System Replacement

LaserFische Upgrade #(Visibility)

Comp & Classification

Mobile App - MVP Mobile App - MVP+ Mobile App - Enhancements

Mobile App - Full Convenience

Mobile App Sports Betting

Mobile App - iLottery

Phase I - Reqmts + RFI + Vendor Phase II - Implement and PilotSports Betting Phase 0 - Foundational / Research

Phase III - Rollout

Debit Card

Internal network Remediation - Phase 2Internal network Remediation - Phase 1

Mature ITSM Phase 2 - Implementation and Deployment Mature ITSM Phase 3 - Self Service Deployment

IAM Phase 0 - Discovery Work Effort IAM Phase 2 - Configuration & PilotIAM Phase 1 - Procurement IAM Phase 3 - Integration with Business Apps

External Network Remediation Phase 1 - ProcurementExternal Network Remediation Phase 0 - Discovery External Network Remediation Phase 2 - Implementation

AD / Azure IAM Phase 1 - UPN AD / Azure IAM Phase 2 - idaaS Implementation

D365 for Sports Betting

EIP Phase 2 - Baseline CapabilityEIP Phase 1 - Discovery & Procurement

Unification - Replace AX with D365AX Phase 0 - Foundational / Research*

Email Migration Phase 1: Requirements Analysis

Website Sports Betting Integration

Intelligen Phase I - Requirements / Gap Analysis - 60 Days

Intelligen Phase II - Couponing, cardless connect, BI CloudIntelligen Phase 0 - Contracting Pre-work IGT Development and Technical Design Intelligen 8 Quality Assurance (QA) (GLI)VTOP. Staging, Readiness

Email Design Email Migration

RPM Phase 0 - Discovery Work Effort

AX - Procurement

EIM Phase 4 - Data Lake and ML

CIAM - Contracting and execution

Website Remodel Phase II

 DESCRIPTION   AMOUNT 

Out‐of State Travel

Miscellaneous travel related to program and project discovery 15,000$          

Contract Payments

Upgrade VLT Intelligen System  6,738,500       

Integration Services for Enterprise Projects 6,000,000       

QA Testing Services for Enterprise Projects  5,500,000       

Establish Future Gaming Platform 2,000,000       

Resource Management ‐ Staffing and Skillset Development  2,000,000       

Infrastructure Enhancements 2,000,000       

Enterprise Integration Platform 2,000,000       

AX Financial System Upgrade 1,500,000       

Sports Betting Program 1,211,900       

Strategic Sourcing Consulting  1,200,000       

Claims & Payment Program  1,000,000       

Gartner Consulting  547,200          

Implement Retail Partner Management 500,000          

Enterprise Information Management  500,000          

Digital Transformation Consulting & Research 300,000          

Retailer Contracts Renewal  161,762          

Enterprise Change Management 15,000            

Professional Development

Miscellaneous training registration for program and project discovery 7,500               

Technical Training 

Miscellaneous training registration for program and project discovery 7,500               

 Total Business Modernization budget  33,204,362$  

                       FY 2020 Budget

Business Modernization Program